Heirs of Dominador S. Asis, Jr. v. G.G. Sportswear Manufacturing Corporation

Summary

The Supreme Court affirmed the rescission of a company sale agreement due to respondents' breach in failing to assume the seller's loan obligations. While the Court of Appeals correctly deleted the award of actual damages for lack of evidentiary support, the Supreme Court recognized that petitioners suffered pecuniary losses and awarded temperate damages of P500,000.00. The Court also granted exemplary damages of P500,000.00 to deter contract breaches and attorney's fees of P100,000.00. The principle of mutual restitution required both parties to return what they received, with respondents entitled to recover their P11,462,642.00 partial payment. The case demonstrates the importance of competent evidence in proving actual damages and the availability of temperate damages when pecuniary loss is certain but the amount cannot be precisely established.